LO1: Understand different perspectives on employment relations and how they influence the roles of people professionals.
Employment relations:
Employment relations is compassed of complex dynamics between employers, employees, and the broader socio-economic context (Suff, 2022). There are different perspectives on employment relations and each one of them have their influence on the roles of people professionals. Enlightenment of the evolving landscape of employment relations can be achieved through examining the styles adopted by organisations and examples of cooperation and conflict within employment relationships. Strategies towards trade unions, and the ways in which people professionals can foster positive employment relations can also be used to shed light.
Perspectives on employment relations:
Employment relations can be derived from various theoretical perspectives, such as pluralist, unitarist, and critical perspectives. According to CIPD (2017), the pluralist perspective acknowledges the existence of diverse interests among stakeholders, employees, employers, and the trade unions. It also recognises the conflicts of interest that can arise, thus advocates for open communication and negotiation to resolve differences. For example, in a pluralist perspective, people professionals recognise the diverse interests of stakeholders and strive to balance those interests through negotiation and open communication. This approach is normally visible in organisations that involve employee representatives in decision-making processes and collective bargaining.
The unitarist perspective puts emphasises on achieving a harmonious relationship between employers and employees, assuming a shared vision and goals. According to unitarist, employment relations is a partnership, with employers and employees working together to achieve organisational goals and objectives. For example, in an organisation where people professionals use unitarist perspective, they emphasise on achieving a harmonious relationship between employers and employees by focusing on achieving a common vision and goals. This perspective emphasises on employee involvement and engagement initiatives to create a cohesive workforce.
On the other hand, the critical perspective emphasises on power imbalances and the structural influences that shape employment relations. It identifies the potential for exploitation and highlights the need for collective action to address inequality. For example, people professionals who use the critical perspective identifies power imbalances and structural influences and strive to address inequalities and promote collective action to improve employment relations.
Critical analysis of organisational styles:
Examining the styles that organisations adopts can have great insights into the delivery of good employment relations. Organisations can adopt a collaborative approach with open communication channels and participatory decision-making processes. According to Gifford (2022), this style plays a vital role in fostering employee engagement and giving room for the consideration of diverse perspectives. For example, an organisation that conducts regular team meetings where employees are encouraged to contribute ideas and provide feedback makes employees feel valued, thus leading to increased engagement and job satisfaction.
Hierarchical organisations rely on a top-down approach, which limits employee involvement in decision-making. However, this style can hinder employee morale and creativity. Therefore, the effectiveness of each style depends on various factors, which include organisational culture, industrial norms and employee expectations. It is crucial for people professionals to critically analyse these styles to be able to identify their strengths and limitations in delivering positive employment relations. For example, an organisation that uses the hierarchical observes strict protocols, but hinders innovation and employee autonomy. Such an organisation has a clear chain of command, which is essential for operational efficiency. Therefore, organisations must critically evaluate their chosen style to ensure it aligns with their goals and the needs of their employees.
Cooperation and conflict in employment relationships:
Cooperation and conflict are essential in employment relationships and can occur in different organisational contexts (CIPD, 2020). For example, in an organisation that adopted unionized, cooperation may be achieved through collective bargaining, joint problem-solving, and employee representation. Trade unions act as intermediaries, who advocates for fair working conditions and protects the employees’ rights. However, in case of lack of trust, unfair treatment, or disagreements over employment conditions conflict can arise. To be able to resolve disputes and maintain a positive employment relation, conflict resolution mechanisms, which include mediation and arbitration are vital. To effectively address conflicts, organisations must encourage open dialogue, establish clear grievance procedures, and offer trainings on conflict resolution.
For example, an organisation may establish employee-employer committees to collectively address workplace issues. This cooperation aims at enhancing trust, productivity, and job satisfaction. However, conflicts can arise due to disputes over employment conditions or conflicting interests. In such cases, it the duty of people professionals to have a conflict resolution mechanism in place. For example, an organisation can have a dedicated people professionals’ department that offers mediation to facilitate fair and just conflict resolution
Employer strategies towards trade unions:
The relationship between employers and trade unions has evolved over time as employers adopt a cooperative approach. Employers are recognising trade unions as partners in shaping employment relations and leveraging their expertise to improve working conditions. Employers understand the value of collective bargaining and consultative forums to address employee concerns (CIPD, 2023). For instance, organisations are constantly involving trade union representatives in decision-making processes related to wages, working hours, and safety measures.
However, there are some organisations who have adopted an adversarial way, as they perceive trade unions as a potential threat to their autonomy and profitability. For example, an employer hiring an anti-union consultant to help them make decisions related to wages and hours of working. These organisations resist unionisation efforts and tends to pose aggressive tactics during negotiations. Evaluating employer strategies requires a nuanced understanding of the specific context and industry dynamics. Employers should consider the benefits of constructive engagement with trade unions, fostering a collaborative environment that benefits both parties and ultimately contributes to good employment relations. Therefore, it is important for organizations to critically evaluate their strategies towards trade unions and consider the benefits of cooperative engagement.
Fostering positive employment relations:
People professional plays a vital role in enhancing a positive employment relation within an organisation. According to CIPD (2023), it is the duty of people professionals to ensure they promote a positive work environment across an organisation. To achieve this, people professionals must ensure fair and transparent HR policies, effective communication channels, and provide employee development opportunities. Additionally, people professionals can come up with initiatives that include employee engagement surveys, training on conflict resolution, and diversity and inclusion programs to build a cohesive and engaged workforce. For example, as a people professional, I can establish a clear performance management system that provide feedback, recognition, and growth opportunities.
Conclusion:
Organisational success, employee well-being, and social harmony is determined by an effective employment relation. A critical evaluation of different perspectives, analysis of organisational styles, examining examples of cooperation and conflict, evaluating employer strategies towards trade unions, and exploring ways in which people professionals fosters a positive employment relation, organisations can strive towards to create a work environment that promotes mutual respect, cooperation, and productivity.
LO2: Understand how external institutions can shape employment relations at organisational level.
Evaluating employment relations practice and policy: navigating external influences and the changing nature of work.
As the HR Director, it is crucial to evaluate the current policy and practice of employment relations within an organisation. Among the external influences of a challenging workplace are competitive pressures and globalisation. The internal factors include organisational culture and mission.
Reviewing employment relations practice
Shaping employment relations by short-term competitive pressures:
Short-term competitive pressures can significantly influence employment relations within organisations. In today’s rapidly changing business landscape, organizations often face intense competition, demanding quick adaptations to market demands and cost pressures. Consequently, employment relations may be shaped by practices such as flexible working arrangements, contingent employment, and performance-based rewards (Suff, 2022). While these practices can enhance organizational agility and efficiency, they can also impact employee well-being and job security. It is crucial to review the organization’s employment relations practices in light of short-term competitive pressures to ensure a balance between operational requirements and employee satisfaction.
Taking a retail organisation as our case study, short-term competitive pressures can lead to the implementation of flexible scheduling practices. This makes an organisation to quickly adjust their staff levels based on customer demand, thus ensuring efficient operations. However, these practices can result in irregular working hours for employees, hence affecting work-life balance and job satisfaction.
Analysing the changing nature of work in different sectors:
According to Mohdzaini (2021), the nature of work has been evolving across various sectors due to technological advancements, changes in customer preferences, and market forces. It is essential for people professionals to analyse how these changes impact employment relations within an organisation. For example, the rise of the gig economy and the increasing prevalence of remote work have changed the traditional employment relationships, thus requires development of new policies and practices. Different organisation may experience distinct changes, which include the manufacturing organisations embracing automation and the service sector that focuses on personalised customer experiences. By understanding these shifts, organisations can be able to tailor their employment relations strategies to effectively engage employees in the changing work landscape.
For example, the rise of remote work and virtual collaboration tools has changed the nature of work. Organisations are now implementing policies that support remote work arrangements, allowing employees to work virtually from anywhere. This is a type of flexibility that enhances employee autonomy and work-life balance and giving organisations a chance to access talent globally.
Assessing external influences on employment relations
Influence of long-term competitive pressures and globalisation:
Organisations that operates in a global market must steer diverse legal frameworks, cultural norms, and labour market conditions. This requires the development of cross-cultural competency and global people practices strategies to address the complexities of managing a diverse workforce (Boys, 2023). Additionally, globalisation exposes organisations to international best practices, which enables the adoption of innovative employment relations approaches. Evaluating an organisation’s responses to long-term competitive pressures and globalisation plays a vital role of ensuring that employment relations practices remain aligned with the evolving global landscape. For example, an organisation can face long-term competitive pressures due to emerging markets and the need to streamline operations. To respond to this, an organisation can implement an automation technology, which can result in changes to employment relations, such as reskilling to help employees to adapt to new technologies.
Role of institutions and employer organisations:
CIPD and employers’ organisations play a vital role in shaping employment relations practices by providing guidance, resources, and professional development opportunities for people professionals, which enables them to enhance their knowledge and skills. Assessing an organisation’s engagement with CIPD helps in ensuring that an organisation observes best practices and industry standards, thus promoting effective employment relations. CIPD provides people professionals with resources and professional development opportunities. Active engagement with the CIPD influences HR policies and practices with the latest research and best practices (CIPD, 2023).
Influence of acas:
Acas gives guidance on employment relations, dispute resolution, and workplace policies. Acas plays an essential role in shaping employment relations practice. The Acas guidelines (Acas, 2023) helps in evaluating an organisation’s compliance to ensures that the policies and practices remain in line with legal and ethical standards, which enhances a positive employment relation. Organisations that adheres to Acas guidelines tends to establish fair grievance procedures and mechanisms for resolving conflicts, which enhances a positive employment relation.
Enhancing employment relations policy and practice
Alignment with organisational culture, mission, and vision:
According to George (2022), employment relations policies and practices must align with an organisation’s culture, mission, and vision. These are important elements that provides the guiding principles for employee engagement and organisational success. Evaluating the alignment ensures that employment relations strategies reinforce the desired organisational values, thus promoting a cohesive and productive work environment. For example, an organisation that has a culture of collaboration and innovation tends to promote employment relations policies that encourage cross-functional teamwork and employee involvement in decision-making processes. This is vital in strengthening an organisation’s values and enhances a positive work environment.
Integration of flexibility and work-life balance initiatives:
Due to the change in employee expectations and societal trends, organisations are considering incorporating flexibility and work-life balance initiatives into their employment relations policies. According to McCartney (2022), these initiatives include flexible working hours, remote work options, parental leave policies, and employee well-being programs. Assessing the integration of such initiatives shows an organisation’s commitment to supporting employee needs, promoting job satisfaction and productivity. For example, an organisation can decide to offer flexible working arrangements to support employees’ work-life balance. This is an integration that recognises the diverse needs of employees and promotes employee satisfaction and retention.
Conclusion:
Evaluating the current policy and practice of employment relations is crucial for people professionals to ensure alignment of the external influences and the changing nature of work. By examining these practices as shaped by short-term competitive pressures, analysing the evolving nature of work, assessing external influences, and enhancing alignment with organisational values, people professionals can achieve a positive employment relation. This is vital in enhancing employee engagement, productivity, and organisational performance.
LO3: Understand how people professionals can work with employees and trade unions to sustain mutuality and voice.
Evaluating employment relations strategy: harnessing external advice and exploring forms of voice.
As the HR Director it is essential to evaluate the current policy and practice of employment relations within an organisation. There are various external influences that shape people management decisions, such as long-term and short-term competitive pressures, globalisation, institutions which include the Chartered Institute of Personnel and Development (CIPD), organisations that the employers belong to, and the Advisory board, Conciliation and Arbitration Service (Acas). Additionally, there are different forms of informal and direct voice, which have potential contributions to improved organisational performance and employee outcomes.
Harnessing external advice and exploring forms of voice.
Reviewing external sources of advice:
Organisations use the external advisory sources when making their people management decisions. These sources include CIPD, employers’ organisations, and Acas. For example, the CIPD plays an essential role in facilitating research materials, giving guidance on best practices, and other aspects of people professionals and employment relations. For example, as a people professional in an organisation engages with the CIPD materials to update themselves on the emerging trends, research, and best practices in employment relations. This is an essential engagement that ensures people management decisions are aligned with the industry’s standards and includes evidence-based approaches.
Employers’ organisation is crucial in offering industrial insights and representing the interests of the employer in shaping employment policies (Peters, 2022). Acas is also essential in providing impartial advice and mediation services to help in resolving workplace issues. Evaluating an organisation’s engagement with these external sources helps assessing the breadth and depth of insights incorporated into people management decisions.
Assessing appropriate forms of voice:
To effectively address employee concerns and contribute to decision-making processes in various types of organisations require different forms of voice. For example, trade unions and works councils are appropriate in large organisations with complex structures to find formal mechanisms such as employee representation. These structures are essential in facilitating collective bargaining, consultation, and negotiation between the employers and employee representatives. Smaller organisations require direct communication channels, which include regular team meetings, suggestion boxes and employee surveys, to collect feedback and engage employees. It is through critically evaluating an organisation’s choice of voice mechanisms, that people professionals can ensure that employee voices are heard in an organisational context. In large organisations, the trade unions play a crucial role in representing employees’ interests and negotiating collective agreements. In such cases, organisations recognise the impact of formal voice mechanisms and collaborates with trade unions to address employee concerns. This ensure fair working conditions, and enhances a productive employment relation.
Analysing forms of informal and direct voice:
Informal and direct forms of voice are essential in complementing a formal mechanisms and contributing to enhancing an organisation’s performance and employee outcomes. According to Peters (2022), informal voice is an unofficial channel that allows employees to express their concerns, which include conversations with supervisors, colleagues, and in online platforms. Direct voice is whereby employees directly expresses their views to the management through various means, such as one-on-one meetings and employee forums. Organisations that have a supportive environment for informal and direct voice tends to have increased employee engagement, creativity, and high problem-solving capabilities. For example, a start-up organisation encourages a culture of open communication and direct voice. It holds regular “town hall” meetings and give employees an opportunity to directly address management, share ideas, and provide feedback. This is a form of direct voice that empowers employees, strengthens their sense of ownership, and promotes a collaborative work environment.
Critical analysis of different forms of informal and direct voice can provide insights into their potential contributions:
Informal voice:
An organisation that encourages open and transparent communication between employees and managers’ benefits from informal voice (Cui, 2021). It is through feeling comfortable expressing an ideas and concerns directly to the supervisors that employees can freely contribute valuable insights, thus leading to improved decision-making and problem-solving within an organisation. Informal voice contributes to the identification of potential issues across an organisation at an early stage, enables timely interventions and organisational improvements. Informal voice channels, which include online collaboration platforms and brainstorming sessions are essential in an organisation. These platforms give employees room to share their ideas, perspectives, and concerns freely, thus fostering a creative and an inclusive work environment. Informal voice enables employees to contribute their unique insights and experiences in an organisation, thus leading to enhanced problem-solving and innovation.
Direct voice:
An organisation that conducts regular employee feedback sessions that give employees an opportunity to share their opinions directly with senior leaders, can foster a culture of direct voice. According to Azevedo, Schlosser and McPhee (2021), this plays an important role of enabling employees to actively participate in organisational decision-making processes. This leads to increased trust, commitment, and alignment between employees and management. Direct voice is also essential in empowering employees to take ownership of their work and contribute to performance improvements. For example, an organisation that conducts regular employee feedback sessions, and give employees an opportunity to directly communicate their suggestions and concerns to senior leaders follows a form of direct voice. This plays a critical role of empowering the employees, as their opinions are valued and considered in decision-making processes. This leads to increased employee engagement, improved morale, and a stronger sense of organisational commitment.
Conclusion:
Evaluating the current policy and practice of employment relations requires an understanding of external influences and the utilisation of appropriate forms of voice. By harnessing external advice from CIPD, employers’ organizations, and Acas, organisations can benefit from research-based insights and best practices.
LO4: Understand how people professionals work with employees and trade unions to mitigate organisational risks.
Evaluating employment relations strategy: Collective bargaining and negotiations for pay and problem resolution.
As the HR Director evaluating the current policy and practice of employment relations within an organisation is vital. There are various factors that influences an organisation’s employment relations strategy, such as long-term and short-term goals and globalisation. Additionally, collective bargaining is vital in determining pay and other contractual issues. It also helps in assessing the impact of negotiations between employers and trade unions when resolving workplace issues.
The role of collective bargaining in determining pay and contractual issues:
Collective bargaining is a process where representatives from employers and the trade unions negotiate employment terms and conditions, such as payment rates and contractual issues. According to (CIPD, 2023), this helps in shaping employment relations and establishing equitable compensation packages. For example, in an organisation, collective bargaining between the management and the trade union helps to determine employee wages, benefits, and working conditions. It is through negotiations that both parties works towards achieving a fair and sustainable agreement that considers an organisation’s financial position and employee well-being. Collective bargaining plays a vital role in promoting transparency, equality, and cooperation, which fosters a positive employment relation.
Collective bargaining plays a very important role in determining compensation and other contractual matters within an organisation. According to Kenton (2022), it provides the employees and trade unions with a favourable and fair environment to engage in negotiations with employers, thus helping to mitigate potential risks for an organisation. In the UK, the law requires the employers to acknowledge the trade unions for the purpose of collective bargaining. Among the privileged and rights associated with recognised trade unions are accessing workplace premises and negotiating on behalf of their members. Among the issues that are covered in the collective bargaining are wages, working hours, vacation entitlements, sick pay, and pension schemes. It some cases, it comprises certain concerns which include health and safety, training opportunities, and equal opportunities.
Impact of negotiations on problem resolution:
Negotiations between employers and the trade unions are vital when it comes to addressing workplace conflicts and resolving issues across an organisation. The negotiations provide a platform for collaborative problem-solving and contribute to a harmonious work environment (Suff, 2022). For example, taking a logistics organisation as our case study, negotiations between the management and the warehouse workers’ union helps in resolving issues related to workload, employee safety measures, and work-life balance. Negotiations lead to mutually beneficial solutions through having an open dialogue and mutual understanding. Resolution of conflicts that is achieved through negotiations enhances employee satisfaction, improves productivity, and strengthens the employment relationship.
Negotiations between employers and the trade unions lead to problem resolution and foster better working relationships between employers and employees. They can also enhance the rising of conflicts and disagreements, which can negatively affect the employees and employer relationships and disrupt work processes. Therefore, it is important for people professionals to understand the potential impact of negotiations before they occur and to resolve them at an earlier stage in order to minimise the likelihood of negative outcomes.
Collaboration and conflict resolution:
Effective negotiation (CIPD, 2020) is essential in encouraging collaboration and conflict resolution, which creates a conducive environment to positive employment relations. For example, taking an IT organisation as our case study, negotiations between the management and the software engineers’ association can focus more on addressing concerns which include project timelines, distribution of workload and career development opportunities. It is through active engagement in negotiations that both parties are able to work together towards finding solutions that balance organisational objectives with employee needs. This is collaborative approach that promotes trust, employee engagement, and job satisfaction, thus contributing to improved organisational performance.
Promoting employee voice and engagement:
Negotiations gives employees a room to voice their concerns, aspirations, and opinions, which increases their engagement and commitment to an organisation (CIPD, 2021). For example, taking a retail store as our case study, negotiations between the management and the retail workers’ union addresses issues that involve flexible working hours, job security, and employee benefits. It is through involving employees in decision-making processes negotiations that an organisation acknowledges and values employee contributions, enhances their sense of ownership and commitment. This plays a vital role of enhancing employee morale, reducing turnover, and a fostering a positive employment environment.
Conclusion:
Evaluation of the current policy and practice of employment relations requires a comprehensive understanding of the influences that shape people management decisions. It is through critically analysing the role of collective bargaining in determining pay and contractual issues and assessing the impact of negotiations on problem resolution, that people professionals can enhance employment relations strategies. Collective bargaining plays an essential role in promoting fairness, equity, and transparency in determination of wages. On the other hand, negotiations enhance collaboration, conflict resolution, and employee voice. These are crucial practices that contribute to positive employment relations, thus improved employee satisfaction, organisational performance, and sustainable success.
References:
ACAS, (2023) Making life better for everyone in Britain. Available from https://www.acas.org.uk/ [Accessed 16th June, 2023]
AZEVEDO, D., SCHLOSSER, F., and MCPHEE, D. (2021). Building organizational innovation through HRM, employee voice and engagement. Personnel Review, 50(2), 751-769.
BOYS, J. (2023) understanding the economy and labour market. Available from https://www.cipd.org/uk/knowledge/factsheets/economy-labour-market-factsheet/ [Accessed 16th June, 2023]
CIPD, (2017) Thematic literature review. Available from https://www.cipd.org/globalassets/media/knowledge/knowledge-hub/reports/power-dynamics-in-work-and-employment-relationships_2017-the-capacity-for-employee-influence_tcm18-33089.pdf [Accessed 15th June, 2023]
CIPD, (2020) Managing conflict in the modern workplace. Available from https://www.cipd.org/globalassets/media/knowledge/knowledge-hub/reports/managing-conflict-in-the-workplace-2_tcm18-70655.pdf [Accessed 15th June, 2023]
CIPD, (2021) Group voice channels: Guide for people professionals. Available from https://www.cipd.org/uk/knowledge/guides/employee-voice-guide/ [Accessed 18th June, 2023]
CIPD, (2023) Managing conflict in the modern workplace. Available from https://www.cipd.org/globalassets/media/knowledge/knowledge-hub/reports/managing-conflict-in-the-workplace-2_tcm18-70655.pdf [Accessed 18th June, 2023]
CIPD, (2023) The profession map. Available from https://www.cipd.org/uk/the-people-profession/the-profession-map/ [Accessed 16th June 2023]
CIPD, (2023) Why work in the people profession. Available from https://www.cipd.org/uk/the-people-profession/careers/why-work/ [Accessed 15th June, 2023]
CIPD, (2023) Working with trade unions. Available from https://www.cipd.org/uk/knowledge/guides/working-trade-unions/ [Accessed 15th June, 2023]
CUI, Y. (2021). The role of emotional intelligence in workplace transparency and open communication. Aggression and Violent Behavior, 101602.
GEORGE, S. (2022) HR policies. Available from https://www.cipd.org/uk/knowledge/factsheets/hr-policies-factsheet/ [Accessed 16th June, 2023]
GIFFORD, J. (2022) Performance management: an introduction. Available from https://www.cipd.org/uk/knowledge/factsheets/performance-factsheet/ [Accessed 15th June, 2023]
KENTON, W. (2022) Collective bargaining. Available from https://www.investopedia.com/terms/c/collective-bargaining.asp [Accessed 17th June, 2023]
MCCARTNEY, C. (2022) Flexible working practices. Available from https://www.cipd.org/en/knowledge/factsheets/flexible-working-factsheet/ [Accessed 16th June, 2023]
MOHDZAINI, H. (2021) Technology and the future of work. Available from https://www.cipd.org/en/knowledge/factsheets/emerging-future-work-factsheet/ [Accessed 16th June, 2023]
PETERS, R. (2022) Employee voice. Available from https://www.cipd.org/en/knowledge/factsheets/voice-factsheet/ [Accessed 17thJune, 2023]
SUFF, R. (2022) Employee relations: an introduction. Available from https://www.cipd.org/uk/knowledge/factsheets/relations-employees-factsheet/ [Accessed 15th June, 2023]
SUFF, R. (2022) Trade unions: an introduction. Available from https://www.cipd.org/uk/knowledge/factsheets/trade-unions-factsheet/ [Accessed 17th June, 2023]
Related Articles: